Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Below is a table for a project where you obtained quotes based upon the most likely,
pessimistic and optimistic numbers. Calculate the Mean value for each Item if the
MARR is set to 12%.
Quotes
Item
Most Likely Pessimistic
Optimistic
First Costs, $
750
950
250
Annual Benefits, $
50
20
80
Life, Years
9.
4
14
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